Preparing for your own death can be difficult, but that doesn’t mean you shouldn’t take time to plan. Final expense insurance can set you ahead of the curve, by ensuring that your family will have the funds necessary to pay for your funeral costs.
Final Expense Insurance
Final expense insurance is a type of life insurance designed for people who cannot qualify for traditional forms of life insurance. It can also be used to supplement another type of life insurance, ensuring that your beneficiaries receive as much compensation as possible through your death benefits.
The money your insurer will send your beneficiaries after you die is called the death benefit. Death benefits vary depending on your policy, but final expense policies typically award less than $50,000. This is unlike traditional life insurance policies, which may offer up to a million dollars in benefits. Final expense benefits are lower because they are more accepting of candidates who have adverse health conditions or other risk factors.
Qualifying For Final Expense
To qualify for final expense insurance, you must answer some health questions that your insurer will ask. These questions are designed to help the insurer determine your risk level. While having prior health conditions does not disqualify you, they may limit your eligibility for higher-paying final expense policies. For example, if you have cancer that is not yet in remission, you will likely not qualify for a normal final expense policy. Instead, you must enroll in a guaranteed issue final expense policy.
Guaranteed Issue Final Expense Insurance
If you are unable to qualify for normal final expense insurance due to your inability to pass the health assessment, you can still get coverage. Guaranteed issue final expense policies are life insurance plans that accept all applicants, though they come at much higher costs than other policies. If you have struggled in the past to get coverage, this may be your only option. Speak to a licensed insurance agent to learn whether guaranteed issue final expense insurance is a reasonable option for you.
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